HomeMy WebLinkAbout1988-082-05/17/1988-INDUSTRIAL DEVELOPMENT ISSUE REVENUE BONDS VIPONT VENTURES RESOLUTION 88- 82
OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
SETTING FORTH THE INTENTION
OF THE CITY OF FORT COLLINS, COLORADO
TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS
FOR VIPONT VENTURES, A PARTNERSHIP
WHEREAS, representatives of Vipont Ventures, a Partnership, a Colorado
general partnership (the "Company") have met with officials of the City of
Fort Collins, Colorado (the "City") , and have advised the City of the
interest of the Company in acquiring and constructing a manufacturing
facility in the City, subject to the willingness of the City to finance the
project (the "Project") by the issuance of industrial development revenue
bonds, pursuant to the Colorado County and Municipality Development Revenue
Bond Act constituting Article 3, Title 29, Colorado Revised Statutes, as
amended (the "Act") ; and
WHEREAS, the Company has represented to the City that the Project will
qualify as a project within the meaning of the Act; and
WHEREAS, the Project consists of the acquisition and development of
land and the construction and equipping of a manufacturing facility
designed to house a non-polluting manufacturing operation of Vipont
Pharmaceutical , Inc. , which will create additional jobs within the City;
and
WHEREAS, the Council has considered the proposal and has concluded
that the economic benefits to be derived therefrom by the City will be
substantial ; and
WHEREAS, the Council has determined the Project to be consistent with
the goals and objectives of the City; and
WHEREAS, the Council desires to indicate its intent to proceed with
financing the Project through the issuance of such revenue bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO:
Section 1 . In order to induce the Company to locate and construct the
Project within the City, the City shall , subject to the provisions hereof,
take all necessary and advisable steps to effect the issuance of industrial
development revenue bonds (the "Bonds") pursuant to the Act in the maximum
aggregate principal amount of Two Million Six Hundred Thousand Dollars
($2,600,000) or such lesser amount as shall be determined and agreed upon
by the Company and the City to finance the Project.
The Bonds will not be general obligations of the City. Neither shall
the Bonds, including interest thereon, constitute the debt or indebtedness
of the City within the meaning of any limitation of the Constitution or
statutes of the State of Colorado or the charter of the City, nor give rise
to a pecuniary liability of the City or a charge against its general credit
or taxing powers. The Bonds shall be payable solely from and secured by a
pledge of revenues derived from and payable by the Company pursuant to
financing agreements with the City.
Section 2. No costs or expenses, whether incurred by the City or any
other party in connection with the issuance of the Bonds or the preparation
of any documents by any legal or financial consultants retained in
connection therewith, shall be borne by the City. All such costs or
expenses shall be paid from the proceeds of the Bonds or otherwise borne by
the Company.
Section 3. Prior to any execution of a financing agreement, mortgage,
indenture of trust, bond purchase agreement or any other necessary
documents and agreements in connection with such Bonds, such documents
and/or agreements shall be submitted for approval to the City, and, if
satisfactory to the City, their execution shall be authorized by ordinance
of the Council pursuant to law.
Section 4. Prior to any further action by the Council , the Company
shall provide the City with the opinion of a recognized Bond Counsel
supporting the legality of the financing of the Project and the utilization
of bond proceeds for said Project.
Section 5. Nothing contained in this Resolution shall constitute the
debt or indebtedness of the City within the meaning of any limitation of
the Constitution or statutes of the State of Colorado or the charter of the
City, nor give rise to a pecuniary liability of the City or a charge
against its general credit or taxing powers.
Section 6. All commitments of the City contained herein are subject
to the condition that within twelve (12) months of the date hereof, unless
otherwise extended by agreement between the City and the Company, the Bonds
to be issued pursuant hereto shall be issued and sold. In the event that
said Bonds to be issued pursuant hereto are not issued within twelve (12)
months, the City of Fort Collins, Colorado shall be under no obligation to
perform any of the terms and conditions contained herein. Nothing
contained herein shall constitute a warranty or representation by the City
that the Bonds will receive from the State of Colorado an allocation of a
portion of the private activity bond limit authorized for the State of
Colorado. The City shall use its best efforts, however, to secure from the
State of Colorado such an allocation authorizing the issuance of the Bonds
from the 1988 State of Colorado private activity bond limit.
Section 7. All resolutions or parts thereof concerning the subject
matter hereof in conflict with this Resolution are hereby repealed to the
extent of such conflict. This repealer shall not be construed to revive
any resolution or part thereof heretofore repealed.
Section B. If any section, paragraph, clause, or provision of this
Resolution with the exception of any section, paragraph, clause or
provision limiting the City's financial obligation shall for any reason be
held to be invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause or provision shall not affect any of the
remaining provisions of this Resolution.
Section 9. This Resolution shall take effect immediately upon its
introduction and passage.
Passed and adopted at a regular meeting of the City Council held this
17th day of May, A.D. 1988.
M alr
ATTEST:
I L
City Clerk